Electronic Banking In Nigeria Challenges And Prospects

Electronic Banking In Nigeria Challenges And Prospects

Abstract

This study reviewed the conception of electronic banking( e banking), Examined its problem and prospects for Nigeria banks and bandied associated pitfalls. It discoursed that the increased operation of e banking worldwide is a function of enhancement in information and dispatches technology( ICT) E banking, it also observed, holds enormous capabilities for the banking assiduity in Nigeria. To achieve these capabilities, the design supported actualizing confidence in the e banking medium by addressing security concerti power force.

Chapter One

Preface

The business terrain is always changing and thus requires a dynamic strategized adaption to these changes by businesses that wish to survive. These changes could be social, profitable, legal, technological, etc( Acha, 2006 109; Akpan, 2005 23). In recent time, amount advancements and inventions have been recorded in information and dispatches technology which has had tremendous impact on the way businesses are conducted. information and communication technology has, among other effects, changed the nature of businesses, reshaped their competitive terrain, reframed request structures, enlarged the size of requests and opened new lookouts of pitfalls heretofore unknown to these businesses.

As usual, the banking system has been in the van in espousing and incorporating these advances in information and communication technology into its operations. This could be attributed to some perceived advantages which information and communication technology offers druggies similar as increased sale effectiveness, convenience and cost reduction( Ayandele and Adeoye, 2006 2). Banks in Nigeria had recognised the capabilities of information and communication technology since early 1980s when some of them began espousing electronic banking. Since these early days, electronic banking products have, however sluggishly but steadily, been on the increase in the system. Banks in Nigeria now offer automated teller machine( ATM) services, internet banking services, telephone banking services, on- line banking services, intranet banking services, credit card services,etc.

The egregious tendency of the Nigerian banking is to come more and more electronically driven, making the understanding of this conception and its practice imperative. In the light of the below, the ideal of this study is to, among other effects, examine the conception of electronic banking with a view to helping both professionals andnon-professionals understand them. This design will also discover the challenges of electronic banking in Nigeria in order to help interpreters and controllers navigate our banks down from them. Eventually, this study assesses the future problems and prospects of electronic banking in Nigeria.

To do this, the design is divided into five sections starting with this introductory note. The alternate section addresses the conception of electronic banking and reviews global experience in its practice. In the third section, the interruptions in the use of electronic bias in fiscal deals are examined. This examination will consider the counteraccusations of electronic banking for the banks and the nonsupervisory/ administrative authorities. The fourth section problems and prospects into the future to discover the way forward for electronic banking in Nigeria. Eventually, recommendations are made and conclusion drawn in the fifth section.

. Statement Of The Problem

In Nigeria, guests of banks moment are no longer enjoying safety of their finances and increase returns on their investments. guests demand effective, fast and accessible services. guests want a Bank that will offer them services that will meet their particular requirements( substantiated Banking) and support their Business pretensions for case; businessmen want to travel without carrying cash for security reasons. They want to be suitable to check their balance online, find out if a cheque is cleared, transfer finances among accounts and indeed want to download sale records into their own computer at work or home. guests want a preferential treatment and full attention by their choice Bank. All these are only attainable through electronic Banking. In line with rendering rates and respectable services that most Banks in Nigeria are gearing toward and investing large sum of plutocrat in information and communication Technology, unexpectedly similar Banks services have been bettered. United Bank for Africa( First bank of Nigeria Plc), Zenith Bank, GT Bank( to mention many) are in the van in the use of IT in rendering services to their guests( The Guardian Newspaper April 18, 2008p 21). It also seeks the challenges involved in Electronic Banking and Stylish artificial practice and the approach of enforcing them in Nigeria Banking system.

State Of The Problem

The problem that leads to the study of this exploration work arises from issues relating to the effective use of internet among Nigerian Banks with specific focus on First Bank of Nigeria Plc.

Despite the rapid-fire relinquishment of the use of internet by numerous business association and government parastatals, the banking sector still need a critical examination of how the use of internet and information technology can by employed to boost their operations.

This study will look into the operation of Nigeria Banks in this period of internet technology, it’ll determine problems encountered and suggest possible results.

Significance Of The Study

There are numerous people that will profit from exploration work. Both the investor and the stakeholders, still, the position of education won’t only ameliorate the use of internet among Nigerian Banks but also suggest results to the problem encountered by the banks in the computer age.

This exploration work will be of advantage to anybody that which to know further about the problems encountered by banks in the use of Internet technologies.

Objects Of The Study

The main ideal of this exploration work is to examine the impact of electronic Banking in Nigeria banking system. Specifically the study objects are;

To estimate the problems and prospects of electronic Banking in First bank of Nigeria Plc

II. To estimate the impact of electronic Banking in First bank of Nigeria Plc

III. To examine whether electronic banking has ameliorate the fortune of the Bank.

IV. To examine the effect of electronic banking has it ameliorate the fortune of the bank.

To examine whether the Bank electronic Banking guideline misbehave with the CBN electronic Banking guideline policy.

Statement Of Research Questions

This design aims to give answers to the following exploration questions;

1. What’s the impact of electronic on the traditional system in Nigeria

2. What fresh value( s) will electronic banking bring to the banking system in Nigeria?

3. How will the electronic banking enhance confidence and trustability of guests on the banking system?

4. To what extent doe internet have effect on the performance of Nigeria Banks?

5. What are the sweats of Bank nonsupervisory bodies on the use of internet among Nigeria banks?

Exploration Thesis

The following suppositions are formulated in null form to council the study.

1. Ho Adoption of Electronic banking doesn’t enhance the fortune of First bank of Nigeria Plc

Hμ Relinquishment of Electronic banking enhances the fortune of First bank of Nigeria Plc

Significance Of The Study

The study would enable the banks directors and indeed the policy makers of the banks and fiscal institutions to be apprehensive of electronic banking as a product of electronic commerce with a view to making strategic opinions. The exploration is inversely significant because it would give answers to factors militating against the perpetration of electronic banking in First bank of Nigeria Plc; prove the success and growth associated with perpetration of electronic banking punctuate the areas of banking operations that can be enhanced via electronic banking and also be an inestimable tool for Staff, Academician, institutions, Commercial directors and individualities that want to know further about electronic banking trends especially in Nigeria.

Compass Of The Study

In performance of the ideal of the study; attention shall be concentrated on electronic banking among other electronic commerce perpetration. In order to conduct an empirical disquisition into the relinquishment of Electronic banking in Nigeria and will also examine the nature of electronic banking operations in First bank of Nigeria Plc from 2007 to 2009.

Limitation Of The Study

In view of the oddities involved, it would be unrealistic to assume that all necessary data have been gathered in the process of the study. Information gathered is limited to those accesses and made available by the repliers and also those gathered from end druggies. still, the impacts of this limitation will be reduced to the barest minimum.

Description Of Related Terms

Access Products – Products that allow consumers to pierce traditional payment instrument electronically, generally from remote locales.

ATM Card– UB Debit Card is a Chip device conforming of circuit element on single silicon chip. The Card a complex circuits that reuse microprocessors with a single chips that contain the complete computation and sense unit of computers. It handed for Unity Bank guests to perform balance inquiry, mini statement and cash pullout as well as transfers through the use of Automated Teller Machines. This green card can also be used for Internet/ Online and POS deals.

Chip Card – Also known as an intertwined circuit( IC) Card. A card containing one or further computers chips or integrated circuits for identification, data storehouse or special purpose processing used to validate particular identification figures, authorize purchases, corroborate account balances and store particular records.

Electronic Data Interchange( EDI) – The transfer of information between associations in machine readable form.

Electronic Money – Monetary value measured in currency units stored in electronic form on an electronic device in the consumer’s possession. This electronic value can be bought and held on the device until reduced through purchase or transfer.

Electronic Reclamation – This is an online reclamation services to all kinds and orders of guests similar as( Army, cortege , police and the Civil) through customizable web doors and the use of scrape cards Legs for a Prospective aspirants simply buy the scrape cards, visit portal and fill applicable information. Information collected about aspirants could also be anatomized meetly using ‘ what if ’ capabilities and filtered according to several criteria to be set by customer. Short listed aspirants could also be communicated automatically via dispatch or SMS or both.

Electronic Web Collection– This enables the Bank mate with Universities and advanced institutions of literacy to handle Admission, Registration, Examination Managements and freights Collection needs. Electronic Admission by Prospective campaigners, Electronic School freights Payment, Automated Registration, Examination and Results Publication/ operation

Internet Banking- This is a product that enables the Bank influence on the Internet Banking System Module in- erected on the new Banking operation( BANKS) enforced by the Bank to serve the Internet Banking needs of the Bank’s guests.

Mobile Banking– This is a product that offers guests of a Bank to pierce services as you go. client can make their deals anywhere similar as account balance, sale enquiries, stop checks, and other client’s service instructions, Balance Inquiry, Account Verification, Bill Payment, Electronic fund transfer, Account Balances, updates and history, client service via mobile, Transfer between accounts etc.

Payment System – A fiscal system that establishes that means for transferring plutocrat between suppliers and of fund, generally by swapping disbenefits or Credits between fiscal institutions.

Point Of trade( POS) Machine– A Point- of- trade machine is the payment device that allows credit/ disbenefit cardholders make payments at deals purchase outlets. It allowed guests to perform the following services Retail Payments, Cashless Payments, Cash Back Balance Inquiry, Airtime Vending, fidelity Redemption, Printing mini statement etc.

Smart Card – A Card with a computer chip bedded, on which fiscal health, educational, and security information can be stored and reused.

Transaction Alert– Our guests carry out disbenefit/ credit deals on their accounts and the need to keep track of these deals urged the creation of the alert system by the Bank to notify guests of those deals. The alert system also serves as announcement system to reach out to guests when necessary information need to be communicated.

Western Union Money Transfer( WUMT)- Western union plutocrat transfer is a product that allowed people with cousins in Diaspora who may be remitting plutocrat home for family up- upkeep, Project backing, School freights etc. Nigerian Communities known for having their siblings gainfully employed in other corridor of the world are idle requests for Western Union Money Transfer.

. Detail Profile of First bank of Nigeria Plc

First bank of Nigeria Plc is one of the leading retail banks in Nigeria which surfaced from the largest junction and connection in Nigeria’s banking assiduity. Following the junction and connection of Nine Banks Intercity Bank, First Interstate, Tropical Commercial, Pacific, Centre Point, NNB, Bank of the North and New Africa Bank limited and commanded by the Central Bank of Nigeria,( CBN). The fiscal institutions with capabilities in investment banking, commercial and retail banking came together in January 2006 to form First bank of Nigeria Plc. It has 248 business services spread across the country and working to increase this number in the nearest future. Unity Bank is the sixth largest bank in Nigeria moment by business locales. The Head Office is located at Plot 785, Herbert Macaulay Way, Central Business District, Abuja, while the Head Office Annex is atNo. 290A, Akin Olugbade Street, Victoria Island, Lagos.

The Mission of the Bank is to produce superior wealth for our stakeholders and The Vision is to be one of the top five fiscal services institutions in Nigeria by 2012.